Baader cuts Georg Fischer on China concerns, high interest rates

Uponor Oyj

04/07/2023 07:44

** Baader Helvea Equity Research downgrades Georg Fischer
 GF.S  to "add" from "buy" on declining industrial PMI in China,
where the Swiss industrial group makes around 25% of its sales
    ** It also points to rising interest rates that affect the
housing construction market and might dampen investments
    ** Worldwide home sales pulled back sharply in H2 2022, hit
by rate hikes, tighter lending standards and higher borrowing
costs, says Baader, adding the full impact has not been felt yet
    ** The brokerage says Georg Fischer's EUR 2.14 bln ($2.33
bln) bid for Finland's Uponor  UPONOR.HE  is highly priced and
will take some time to integrate
    ** But overall it sees the deal as a "good fit with positive
long-term profit contribution"
    ** Out of seven analysts that cover Georg Fischer, five rate
the stock "strong buy"/"buy" and ​two "hold"

($1 = 0.9178 euros)

 (Reporting by Paolo Laudani)
 ((Paolo.laudani@thomsonreuters.com))